The Virginian-Pilot
                             THE VIRGINIAN-PILOT 
              Copyright (c) 1996, Landmark Communications, Inc.

DATE: Thursday, February 29, 1996            TAG: 9602290321
SECTION: FRONT                    PAGE: A8   EDITION: FINAL 
SOURCE: ASSOCIATED PRESS 
DATELINE: WASHINGTON                         LENGTH: Short :   48 lines

HOUSE STOPS SHORT OF ENDING PEANUT PROGRAM

Southerners and their farm-state allies in the House narrowly fought off a move Wednesday to kill a Depression-era peanut program that critics say forces shoppers to shell out more at the checkout line.

The 212-209 vote came as the House moved toward a major overhaul of farm programs that would end decades-old subsidies for corn, cotton, wheat and other crops.

First came skirmishes over the more controversial sugar, dairy and peanut programs. Critics said consumers pay for the mix of price props, orders and quotas that boost farm-level prices and fly in the face of the bill's larger stab at reform.

``This outdated program is based on a system reminiscent of feudal society,'' said Rep. Nita Lowey, D-N.Y., who pushed for the amendment alongside Rep. Christopher Shays, R-Conn. The program limits who can grow peanuts for sale in this country and guarantees a price at twice the world market. They cited a congressional General Accounting Office report that said the program adds $500 million to the cost of peanuts each year.

Peanut-state lawmakers countered that peanut costs are so small they scarcely make a dent in store prices. The overall bill makes several changes, dropping the guaranteed price by 10 percent and making fewer peanuts eligible for the guaranteed minimum price. They said 15,000 farm families could lose their livelihoods as cheap, low-quality peanuts flood America from places like Argentina and China.

``This amendment is for the candy manufacturers of America and it guts the little peanut farmers,'' said Rep. Charlie Rose, D-N.C. ILLUSTRATION: HOW THEY VOTED

A ``yes'' vote was to kill the peanut support program.

Herbert Bateman, R-Va.No

Owen B. Pickett, D-Va.No

Robert C. Scott, D-Va.No

Norman Sisisky, D-Va.No

Eva Clayton, D-N.C. No

Walter Jones Jr., R-N.C. No

by CNB